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Redefined Business
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Sold
Parts Distribution & Automotive Aftermarket Friction.
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Negative
EBITDA $18mm to a Positive $5mm.
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Debt
Reduction / Restructure from $35mm to $10mm.
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This major supplier to three
domestic auto manufactures was suffering losses of approximately 10% of
sales. It was in violation of bank covenants and a bankruptcy filing
appeared to be the next step. HMI was engaged to stop the bleeding,
re-engineer and update the physical facilities so that the company was again
competitive, correct a major quality problem of 25% rejects and develop
and implement a turnaround plan. The turnaround team was formed with HMI
and management. The short-term actions were taken by the team to stop
the bleeding and control the cash. |
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This large, privately owned, branded apparel
company had failed to make some of the necessary changes towards offshore
production and, as a result, began losing significant cash and market share. HMI
was engaged to establish a turnaround team to quickly devise and implement a
plan to save the company and restore it to its once competitive and profitable
position, to prepare the company for sale, and to manage the sale process.
U.S. production was moved offshore, customer service was restored, and necessary
systems and controls were established to return the company to profitability.
The company became profitable again after 16 months and the implemented plan
resulted in a sale of over 200% of the expected return by the owners. The
turnaround was successful. |
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$55 mm
Sales / $30 mm Debt.
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Resolved
Quality Control issues and increased business with new and existing
accounts.
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Out-of-court settlement / Sale yielding Lenders 70% payout.
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